On the menu today: This newsletter will dip its toe into waters it rarely explores — interest rates and inflation. The guys at Capital Matters know more about this stuff than I'm ever going to — but I have the advantage in explaining it to a layman because I'm a layman.
Fighting Inflation: An Explainer
What causes inflation? Too much money chasing too few goods. Think back to the old Duck Tales episode. If you had a form of currency that magically replicated itself every few minutes, then not only would you quickly become a millionaire, but everyone else would quickly become a millionaire. And when everyone is a millionaire, the value of a particular dollar or currency declines rapidly. Suddenly, the cost of everything would go up, because the amount of goods — cups of coffee, sandwiches, or gallons of gas — ...
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